Jakarta, CNN Indonesia —
Everyone certainly wants to have House or private residence. No exception, kaum millennial. In fact, not a few millennials are now starting to plan financial strategies to be able to buy a house.
In fact, CEO of Indonesia Property Watch, Ali Tranghanda, said that millennials will be the target of the property market next year. This millennial market is quite promising, considering that currently 32.5 percent of Indonesia’s population are millennials born between 1980 and 1995.
“In the future, the market profile for those aged between 27-39 years old with an income of Rp. 8.5 million,” said Ali in the Indonesia Property Outlook, last Wednesday (22/12).
With this income, he estimates that millennials can afford to buy a house with a price range of between IDR 500 million to IDR 1 billion.
According to Financial Planner and founder of Tatadana Consulting, Tejasari Asad, millennials who earn a salary of Rp. 8.5 million can afford to buy a house, as long as they are disciplined in allocating their income.
In fact, millennials can pay in installments with a zero percent down payment (DP) option. However, keep in mind, only 30 percent of income can be allocated for home mortgage costs. If millennials have a salary of IDR 8.5 million, then they have to allocate IDR 2.55 million specifically for house installments.
However, it should be borne in mind that installments of the house are also not without risk. If you are late or are no longer able to pay the installments, the house can be confiscated by the bank.
Therefore, Tejasari suggested that millennials should be really disciplined in allocating funds, and have savings for an emergency fund if they suddenly lose their job so they no longer have a steady income.
Furthermore, Tejasari said that if the house price of between Rp. 500 million and Rp. 1 billion was deemed too heavy because there were other dependents, then the alternative was that millennials had to adjust the price of houses that were cheaper and far from the city center.
“Maybe it’s no longer in the city (house prices are IDR 500 million-Rp 1 billion), so maybe to be able to pay it in installments, there are things that need to be adjusted,” he said.
The financial planner of the Education Plan Partner (MRE) Andi Nugroho revealed three things that millennials need to pay attention to when paying for their house.
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First, don’t just think you can pay the down payment and monthly installments. But also, you have to think about whether you are able to secure money as much as the installment price for each month in the worst financial conditions.
“The thing to think about is that paying the installments is a top priority. We have to secure a few million to pay the installments,” he told CNNIndonesia.com, Thursday (23/12).
Second, millennials also have to think about everyday life. Andi said that someone should not be able to pay the installments, but the needs for daily life will be disturbed.
“Don’t let us pay the installments, but eat less often or even we can’t have picnics, we can’t be happy. Make sure this payment doesn’t make our finances ‘shaky’,” he added.
Third, look for other income outside the basic salary. Andi said this could be done as a preventive measure if one day you don’t have a steady income while the installments continue.
In addition, by looking for additional income daily life can also be helped.
“You can increase your income, have a side job, a side business so you can pay the installments safely but you can still enjoy life,” said Andi.
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